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Cape Town - The Competition Appeal Court's judgment on a merger
between US retail giant Walmart and local company Massmart Holdings [JSE:MSM] is a victory
for all unemployed South Africans, the Democratic Alliance said on
Friday.

In his judgment, Judge Dennis Davis dismissed the
application by the ministers of economic development, trade and
industry, and agriculture, forestry and fisheries who sought to review
and set aside the Competition Tribunal's approval of the merger between
Walmart and Massmart.

"This is a victory for all unemployed South Africans," said DA spokesperson Haniff Hoosen.

"The decision opens the door to massive foreign
investment into South Africa by Walmart, and the many job creation
opportunities that will stem from that."

The competition authorities were there to ensure that
companies did not abuse their market power and that mergers were in the
public interest.

"The ministers unfortunately attempted to use the competition authorities as a tool to further their own political agendas.

"The money spent on this appeal by the ministers has clearly been utterly wasteful."

Massmart would create thousands of jobs as it expanded with capital provided by Walmart.

Walmart would also provide local producers with
opportunities to access foreign markets through Walmart's supply chain,
creating opportunities for South African producers to grow their
businesses.

"And most importantly, Walmart's entry into the South
African market will lower the price of goods, which would benefit all
South Africans, especially the poor," Hoosen said.

The judgment was welcomed by Freedom Front Plus leader
Pieter Mulder, who said South Africa urgently needs foreign investments
to increase economic growth and create more jobs.

A decision against the merger would have frightened away foreign investors.

Free market principles accompanied by a social
conscience and regulated competition is the best solution for South
Africa, he said.

Business Unity SA deputy CEO Raymond Parsons also welcomed the conclusion of the matter.

The court successfully balanced the need to project
South Africa as an investor-friendly economy, while simultaneously
addressing the concerns around job losses and the role of small and
medium suppliers.

"It remains essential, if South Africa is to attain its
growth and development goals, to make the country a destination of
first choice for foreign investment and for such investors to feel
welcome," Parsons said.

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